CHENNAI: A division bench of Madras High Court has recused from hearing the petitions filed by the Tamil Nadu government, and its business entity Tamil Nadu State Marketing Corporation (TASMAC). TASMAC is on the retail sale of liquor, against the action initiated by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA) over alleged corruption.
The bench consisting of Justices MS Ramesh and N Senthilkumar, having the portfolio for hearing PMLA cases, on Tuesday said they could not hear the cases for certain reasons.
“We are not taking up the petitions. We have some reasons (to recuse),” the bench said, adding that the matters would be posted before the alternative bench.
With this bench recusing, the petitions may be listed before another bench consisting of justices SM Subramaniam and K Rajasekar.
On June 20 when the petitions were heard, justices Ramesh and Senthilkumar had passed certain comments and raised questions on the rationale behind the ED detaining long hours the officers and employees of TASMAC during the searches which lasted for about three days, from March 6 to 8, 2025.
The judges also had also orally directed the ED not to proceed further with any coercive action until March 25 and to file counter-affidavits by then.
TASMAC sought a court declaration declaring the ED raids illegal, while the state government challenged the central agency's authority to investigate government departments and entities without prior consent.
TASMAC also submitted that the ED had been holding a roving enquiry without having adequate materials and reasons to believe there is an act of proceeds of crime generated.
The central agency, after holding the raids, had claimed that incriminating data relating to transfer postings, transport tender, bar licence tender, indent orders favouring a few distilleries and excess charge of Rs. 10-30 per bottle were recovered.
It also said that investigations revealed that distilleries inflated expenses and fabricated bogus purchases, through bottle-making companies, to siphon off over Rs. 1000 crore unaccounted cash and these funds were used for kickbacks to secure increased supply orders from the TASMAC.
